New Delhi: In a significant development for India's energy sector, two state-owned refiners have procured a combined total of 4 million barrels of crude oil from Guyana, marking the country's inaugural import of this South American grade. The deal, facilitated through Exxon Mobil, is set for delivery by the end of 2025 or early 2026.
Indian Oil Corporation (IOC), the nation's largest refiner, has acquired 2 million barrels of the Golden Arrowhead (GAH) crude, while Hindustan Petroleum Corporation (HPCL) has secured an equal amount, comprising a blend of Guyana's Liza and Unity Gold crude grades. This move underscores India's strategic initiative to diversify its crude oil sources amidst fluctuating global markets and geopolitical considerations.
The decision to import Guyanese crude aligns with India's broader energy strategy, which includes reducing dependence on Russian oil. Recent geopolitical tensions have prompted Indian refiners to seek alternative sources, with some preparing to cut Russian oil imports in response to international pressures. The diversification efforts are also influenced by the growing output from South American oil producers, positioning Guyana as a viable option for meeting India's energy demands.
Guyana's oil exports have experienced a significant surge, reaching a record high of 938,000 barrels per day in October 2025. This increase follows the operational commencement of its fourth floating production facility, highlighting the nation's expanding capacity to meet global energy needs.
The import of Guyanese crude by Indian refiners not only reflects a strategic shift in sourcing but also signifies a strengthening of energy ties between India and emerging oil producers in South America. As global energy dynamics evolve, such collaborations are expected to play a pivotal role in ensuring energy security and economic stability for nations worldwide.